DiNapoli: Financial challenges remain for state despite progress

by jmaloni

Submitted

Wed, Oct 16th 2013 07:00 am

State spending in 2013 was $6,801 per New Yorker

New York state spending declined for
the second straight year in fiscal year 2012-13 while debt reached an all-time
high of $63.5 billion, according to the annual report on the financial condition of New York state
released by Comptroller Thomas P. DiNapoli.

"State policy decisions in the past
three years have helped New York better align state spending with revenue, but
difficulties remain," DiNapoli said. "The aim should be to build on the
progress made and put New York state on a truly sustainable fiscal path. While
short-term financial results appear positive, the fact that we are still
dependent on temporary resources means the long-term outlook remains
challenging."

DiNapoli's report found total state
spending decreased 0.3 percent, or $407 million, from the prior year. Still,
since 2009, state spending has grown 9.5 percent, outpacing inflation. State
spending has been partially paid for through borrowing $17.8 billion since
2009, including $3.5 billion in 2013.

New York was the second most indebted
state after California and ranked fifth among all states in debt per person.
State funded debt outstanding equaled $3,246 per person, or 6.2 percent of
personal income. State funded debt service totaled $7.1 billion in 2012-13 and
is expected to grow to $8.6 billion by 2018.

•Public health and education spending
accounted for nearly 68 percent of total state spending;

•State, local and federal Medicaid
costs rose to $51.2 billion in SFY 2012-13 from $44.3 billion four years ago;
and

•Support for public elementary and
secondary schools in 2010-11 totaling $57.5 billion came from state ($23.1
billion), local ($29.7 billion) and federal sources ($4.7 billion).

The report also noted:

•In 2011, 60 percent of college
graduates in New York left school with debt, down from 62 percent in 2007;

•For the second consecutive year, the
state's food stamp program, funded by the federal government, experienced
slower growth in recipients and expenditures than during and immediately after
the 2008-09 recession, with an average monthly increase of 74,976 to 3.1
million individuals in SFY 2012-13;

•In 2012, 60.1 percent of the state's
highways were rated good to excellent, a 4.6 percent decline since 2008;

•New York farms generated $4.4 billion
in cash receipts from the sale of commodities in 2011; and

•A total of 83,755 inmates were held in
136 state and local correctional facilities at the end of 2012 (including 59
state correctional facilities, 61 county jails and 16 New York City
correctional facilities), a 9.8 percent decrease since 2003.

The annual report on the financial condition
of New York state provides the public with an overview of the fiscal situation,
as well as selected economic and demographic trends affecting the state.
DiNapoli also released the Comprehensive Annual Financial Report (CAFR) for
SFY 2012-13, which contains the state's audited financial statements.